Uganda Sees 9.1% Growth in Exports as Middle East, EU Drive Demand

Summary:

• Uganda’s export earnings reached US$744.86 million in October 2024, a 9.1% increase from the previous month, driven by strong performance in mineral products, agriculture, and oil re-exports. The Middle East, especially the UAE, was the top destination.

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Uganda’s export earnings soared to US$744.86 million (about Shs2.7 trillion) in October 2024, marking a 9.1% increase from the previous month’s US$682.69 million (Shs2.47 trillion), according to the Ministry of Finance’s monthly economic report. This growth was primarily driven by strong performances in mineral products, tea, tobacco, fish, hides, skins, sesame (simsim), beans, and oil re-exports.

Exports excluding coffee and minerals saw an 8.2% rise, reaching US$288.05 million from US$266.15 million. The report highlighted this as a sign of growing export diversification.

The Middle East led as Uganda’s top export destination, receiving 38.3% of total exports, with the UAE accounting for nearly all (97.8%) of this figure. Other major markets included the East African Community (EAC) at 26.6%, the European Union (EU) at 15.4%, and Asia at 14.5%.

While exports grew, merchandise imports rose sharply by 21.7%, reaching US$1.27 billion (Shs4.6 trillion) in October. This increase was driven by higher imports of machinery, vehicles, and base metals, with Asia contributing the largest share (43.9%), notably from China (51.3%), India (24.7%), and Japan (9.0%).

The rise in exports, particularly from minerals and agriculture, underscores Uganda’s expanding role in global trade. However, the sharp increase in imports highlights rising domestic demand for industrial inputs and machinery, crucial for economic growth.

The Ministry of Finance is optimistic about continued growth, driven by strong trade partnerships and rising export volumes.